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nata0808 [166]
3 years ago
10

A company has the following per unit original costs and replacement costs for its inventory: Part A: 5 units with a cost of $5,

and replacement cost of $4.00 Part B: 10 units with a cost of $6, and replacement cost of $7.00 Part C: 10 units with a cost of $3, and replacement cost of $2.00 Using the lower of cost or market method applied to the individual items, the total value of this company's ending inventory is:
(A) $100.00
(B) $125.00
(C) $110.00.
(D) $115.00.
Business
1 answer:
RSB [31]3 years ago
5 0

Answer:

Option (A) is correct.

Explanation:

Part A:

Cost = No. of units × cost per unit

       = 5 × $5

       = $25

Replacement cost = No. of units × cost per unit

                              = 5 × $4

                              = $20

Value to be recognized = $20

Part B:

Cost = No. of units × cost per unit

       = 10 × $6

       = $60

Replacement cost = No. of units × cost per unit

                              = 10 × $7

                              = $70

Value to be recognized = $60

Part C:

Cost = No. of units × cost per unit

       = 10 × $3

       = $30

Replacement cost = No. of units × cost per unit

                              = 10 × $2

                              = $20

Value to be recognized = $20

Therefore,

Value of Ending inventory = Sum of recognized value of all the three parts

                                            = $20 + $60 + $20

                                            = $100

Hence, the total value of this company's ending inventory is $100.

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Answer:

A) Regionalism

Explanation:

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Stock X has a beta of 1.4 and stock Y has a beta of 0.8. The market risk premium is 5.0% and the risk-free rate is 2.0%. What is
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The computation is shown below;

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Explanation:

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